Dogecoin [DOGE] Stays Above Major Support But For How Long?

Dogecoin has been declining since a spike in September which resulted in a price increase of over 200%. The spike brought price from an important support level at $0.0022 to almost $0.007.

Price has returned to this support level after a prolonged decline which followed the spike. Price currently trades above the support level but for how long is another question. The bearish market movements over the past week have even resulted in the price action of Doge dropping as low as $0.00205 below the support level. However, Dogecoin did not close above the support level and managed to trade back above.

Price has been retesting the support level today, and all of the momentum is with the sellers. Both the RSI and MACD have been decreasing reflecting this seller momentum.

Dogecoin Daily Chart – Source: TradingView.com

The market leader Bitcoin has also been trading close to an important level today. Bitcoin dropped to a low around $4100 but has since recovered to around $4280. With momentum strongly on the side of sellers, a drop below $4000 is a real possibility for the market leader.

A drop below $4000 in Bitcoin would likely catalyze a sharp sell-off across altcoins including Doge. Sharp sell-offs across the market took place when bitcoin broke below both $6000 and $5000. Traders in Dogecoin should also monitor the market leader for this point as a drop below this point in Bitcoin would likely result in Dogecoin breaking hard below its support level.

Bitcoin Daily Chart – Source: TradingView.com

Key Takeaways:

Doge drops below key support but retraces back above. Price action currently trades around the support level.

With momentum currently strongly on the side of sellers, a drop below the $0.0022 support is a strong possibility.

Bitcoin has traded close to the important $4000 level today. It has since retraced, but a break below this point would likely lead to a sharp decline across altcoins.

Dogecoin [DOGE] Stays Above Major Support But For How Long? was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.